Singapore Airlines Ltd. · SGX:C6L
Singapore Airlines — H1 FY2024/25 Earnings Presentation
49 slides from Singapore Airlines's earnings presentation, Nov 11, 2024
Slide 1: SIA Group Analyst/Media Briefing 1H FY24/25 Results
SIA Group Analyst/Media Briefing 1H FY24/25 Results (Ended 30 September 2024) 11 November 2024 The copyright in this material (other than in respect of information from external sources) is owned by Singapore Airlines Ltd. Singapore Airlines Ltd has not independently verified the information from ex
Slide 2: Presentation by Divisional Vice President Financial Services
PRESENTATION BY: Divisional Vice President Financial Services Mr. Balagopal Kunduvara The copyright in this material (other than in respect of information from external sources) is owned by Singapore Airlines Ltd. Singapore Airlines Ltd has not independently verified the information from external so
Slide 3: Group Financial Results Key Highlights
Group Financial Results Key Highlights Operating profit of $795.6 million for 1H FY24/25, 48.8% lower than a year ago Revenue Expenditure 9,497 million 8,702 million +3.7% YoY +14.4% YoY Pax Flown Revenue Cargo Revenue Net Fuel Costs Non-Fuel Costs 7,668 million 1,102 million 2,730 million 5,972 mil
Slide 4: Operating Results for the Main Companies of the Group
Operating Results for the Main Companies of the Group 1H 1H Better/ Better/ Q2 Q2 Better/ Better/ FY24/25 FY23/24 (Worse) (Worse) FY24/25 FY23/24 (Worse) (Worse) ($’M) ($’M) ($’M) (%) ($’M) ($’M) ($’M) (%) Full-service carrier 785.9 1,512.2 (726.3) (48.0) 317.5 774.7 (457.2) (59.0) Low-cost carrier
Slide 5: Group Operating Statistics
Group Operating Statistics 1H FY24/25: Overall capacity up 10.6% YoY, with passenger capacity up 11.0% and cargo capacity up 10.2% ASK CTK Overall CTK 1H (YoY) 1H (YoY) 1H (YoY) +11.0% +10.2% +10.6% Q2 (YoY) Q2 (YoY) Q2 (YoY) +9.7% +9.6% +9.7% Pax Capacity - ASK (million) Cargo Capacity - CTK (milli
Slide 6: Group Financial Results
Group Financial Results 1H 1H Better/ Better/ Q2 Q2 Better/ Better/ FY24/25 FY23/24 (Worse) (Worse) FY24/25 FY23/24 (Worse) (Worse) ($’M) ($’M) ($’M) (%) ($’M) ($’M) ($’M) (%) Total Revenue 9,497.4 9,162.4 335.0 3.7 4,779.0 4,683.0 96.0 2.0 Total Expenditure 8,701.8 7,608.6 (1,093.2) (14.4) 4,453.6
Slide 7: Group Revenue
Group Revenue 1H FY24/25: Group revenue rose by 3.7% YoY Group Revenue ($'M) 5,081.9 4,683.0 4,768.4 4,718.4 4,779.0 4,479.4 559.4 518.7 498.8 540.5 561.6 1H FY24/25 541.7 +8.3% YoY $9,497.4M 1H (YoY) $335.0M 4,164.8 3,676.4 3,873.2 3,970.3 3,828.0 3,839.9 (+3.7%) -0.9% YoY Q2 (YoY) $96.0M (+2.0%) Q
Slide 8: Group Operating Statistics - Passenger
Group Operating Statistics - Passenger Demand for air travel remained healthy but unit revenue was lower than last year RASK PLF (%) (₵/ask) 1H FY24/25 100 RASK: 8.8¢/ask PLF: 86.4% 12 Q2 FY24/25 9.6 RASK: 8.7¢/ask 10 8.9 PLF: 85.8% 90 88.6 8 FY19/20 Group RASK (7.5¢/ask) 86.9 FY19/20 Group PLF 6 (8
Slide 9: SIA and Scoot Operating Statistics - Passenger
SIA and Scoot Operating Statistics - Passenger Unit revenue for both airlines remained above pre-Covid levels FSC: SIA Operating Statistics LCC: Scoot Operating Statistics 1H FY24/25 RASK: 9.6¢/ask 1H FY24/25 RASK PLF (%) RASK PLF (%) PLF: 85.7% RASK: 5.7¢/ask (₵/ask) (₵/ask) PLF: 88.6% Q2 FY24/25 R
Slide 10: Group Operating Statistics - Cargo
Group Operating Statistics - Cargo 1H FY24/25: Sustained demand in air freight resulted in higher load factors YoY and stabilisation of cargo yields 1H FY24/25 Cargo Yield CLF (%) Yield: 36.2¢/ltk (₵/ltk) CLF: 57.4% 100 50 Q2 FY24/25 90 Yield: 36.2¢/ltk 39.2 CLF: 57.2% 36.1 40 80 70 FY19/20 Yield (3
Slide 11: Group Expenditure
Group Expenditure 1H FY24/25: Non-fuel expenditure rose by 12.1% YoY, largely driven by the 10.6% growth in overall capacity Group Expenditure ($'M) 4,472.9 4,453.6 4,203.7 4,248.2 3,883.7 3,724.9 1H FY24/25 $8,701.8M 3,019.1 3,094.0 2,864.0 2,877.9 2,671.5 2,654.0 +16.6% YoY 1H (YoY) $1,093.2M (+14
Slide 12: Group Expenditure
Group Expenditure Handling Charges Depreciation & Leased Aircraft Maintenance and $684.0M Aircraft Charges Overhaul Costs (+$112.2M, +19.6%) $1,123.7M $335.9M (+$98.3M, +9.6%) Staff Costs (-$18.1M, -5.1%) $1,855.0M (+$174.2M, +10.4%) 12.9% Landing, Parking & 7.9% Overflying Charges 3.9% $440.2M 21.3
Slide 13: Net Fuel Cost and Fuel Hedging
Net Fuel Cost and Fuel Hedging Net fuel cost rose 19.6% YoY on the back of higher volume uplifted and lower hedging gain Group Fuel Cost Analysis ($'M) +176.3 +6.6 -10.2 2,729.9 +274.1 Strengthening +$446.8M 2,283.1 Lower weighted Lower (+19.6%) of USD average fuel price hedging gain against SGD Hig
Slide 14: Fuel Hedging Status
Fuel Hedging Status Hedges in place up to Q4 FY25/26, with additional gains locked in from closed-out trades Percentage Average Hedged Hedged Price Fuel Hedging Position (%) (USD/BBL) (as of 17 October 2024) Brent MOPS Brent MOPS Q3 - 50 - 92 FY24/25 Q4 - 46 - 92 Q1 4 32 74 91 Q2 4 23 75 91 F
Slide 15: Group Operating Profit
Group Operating Profit Group Operating Profit ($'M) 799.3 754.5 1H FY24/25 $795.6M 609.0 564.7 470.2 1H (YoY) $758.2M 325.4 (-48.8%) Q2 (YoY) $473.9M (-59.3%) Q1 Q2 Q3 Q4 Q1 Q2 FY23/24 FY23/24 FY23/24 FY23/24 FY24/25 FY24/25 Slide 15 The copyright in this material (other than in respect of informati
Slide 16: Group Operating Profit (YoY progression)
Group Operating Profit (YoY progression) Group Operating Profit ($'M) Higher net +41.7 fuel cost +118.3 1,553.8 Higher cargo Largely: Higher pax revenue Higher • Higher depreciation & flown staff costs Higher leased aircraft charges revenue handling (-98.3M) -758.2M -446.8 charges Higher • Foreign e
Slide 17: Group Net Profit
Group Net Profit Group Net Profit ($'M) 734.0 707.1 658.7 1H FY24/25 575.0 $742.0M 451.7 1H (YoY) $699.1M 290.3 (-48.5%) Q2 (YoY) $416.8M (-58.9%) Q1 Q2 Q3 Q4 Q1 Q2 FY23/24 FY23/24 FY23/24 FY23/24 FY24/25 FY24/25 Slide 17 The copyright in this material (other than in respect of information from exte
Slide 18: Group Net Profit (YoY progression)
Group Net Profit (YoY progression) Group Net Profit ($'M) Lower operating profit 1,441.1 -$699.1M (-48.5%) Loss on disposal of aircraft, Lower net spares, and spare +96.6 +13.6 742.0 interest income engines vs gain last year +34.5 Others -758.2 -49.2 Higher share of Lower tax -36.4 profits expense o
Slide 19: Group Financial Results
Group Financial Results 1H FY24/25 1H FY23/24 Earnings Per Share (cents) - Basic R1 22.9 31.2 - Adjusted Basic R2 25.0 48.5 - Diluted R3 22.1 30.4 EBITDA ($’M) R4 2,288.4 3,009.6 EBITDA margin (%) R5 24.1 32.8 Dividend Per Share (cents) 10.0 10.0 - Interim R1 Earnings per share (basic) is computed b
Slide 20: Group Financial Position
Group Financial Position As at 30 September 2024 As at 31 March 2024 Total assets ($’M) 40,955.1 44,264.7 Total debt ($’M) 13,150.0 13,448.0 Total cash and bank balances ($’M) R6 9,046.2 11,256.0 Fixed deposits (placed for tenors longer than 12 months) ($’M) 856.6 806.0 Total liabilities ($’M) 26,84
Slide 21: Group Operating Fleet Development
Group Operating Fleet Development The Group expects to have 204 aircraft in its operating fleet at the end of the Financial Year Operating Fleet As at 30 September 2024 In Out As at 31 March 2025 SIA 777-300ER 22 22 A380-800 12 12 A350-900 64 +1R1 65 787-10 26 26 737-800 NG 6 -2R2 4 737-8 16 16 747-
Slide 22: Projected Group Capital Expenditure
Projected Group Capital Expenditure Projected Capital Expenditure FY24/25 FY25/26 FY26/27 FY27/28 FY28/29 ($’M) Aircraft 2,300 4,000 4,000 3,300 2,700 Others 600 600 800 300 300 Total 2,900 4,600 4,800 3,600 3,000 Note: Based on contractual delivery schedule. Slide 22 The copyright in this material
Slide 23: Presentation by Chief Executive Officer Mr Goh Choon Phong
PRESENTATION BY: Chief Executive Officer Mr Goh Choon Phong The copyright in this material (other than in respect of information from external sources) is owned by Singapore Airlines Ltd. Singapore Airlines Ltd has not independently verified the information from external sources. This material may n
Slide 24: Challenges for the Aviation Industry Well Positioned for the Future
1 Challenges for the Aviation Industry 2 Well Positioned for the Future Slide 24 The copyright in this material (other than in respect of information from external sources) is owned by Singapore Airlines Ltd. Singapore Airlines Ltd has not independently verified the information from external sources
Slide 25: Challenges for the Aviation Industry
Challenges for the Aviation Industry Intensifying Supply Chain Cost Inflation Geopolitical Climate Change Competition Disruption Tensions Slide 25 The copyright in this material (other than in respect of information from external sources) is owned by Singapore Airlines Ltd. Singapore Airlines Ltd ha
Slide 26: Intensifying Competition
Intensifying Competition We continue to reap the benefits of our efforts over the past three years despite intensifying competition FSC Yield 13 12.5 12 Yield (¢/pkm) 11.5 11.4 FY24/25 11 11.1 10.5 10 9.5 Q1 Q2 Q3 Q4 Slide 26 The copyright in this material (other than in respect of information from
Slide 27: Intensifying Competition
Intensifying Competition We continue to reap the benefits of our efforts over the past three years despite intensifying competition FSC Yield 13 12.5 12.5 12 12.2 Yield (¢/pkm) 12.1 12.0 11.5 FY23/24 -5.8% 11 11.4 FY24/25 -9.0% 11.1 10.5 10 9.5 Q1 Q2 Q3 Q4 Slide 27 The copyright in this material (ot
Slide 28: Intensifying Competition
Intensifying Competition We continue to reap the benefits of our efforts over the past three years despite intensifying competition FSC Yield 13 12.5 12 Yield (¢/pkm) 11.5 Pre-Covid +12.9% FY23/24 11 11.4 +12.1% FY24/25 11.1 10.5 10.3 10.3 10 10.1 9.9 9.5 Q1 Q2 Q3 Q4 Slide 28 The copyright in this m
Slide 29: Cost Inflation
Cost Inflation FSC Unit Cost ex-Fuel 6.2 Two waves of Transformation between FY2017/18 and FY2022/23 and our subsequent adoption of a 6.1 6.0 continuous transformation mindset 6.0 5.9 Unit Cost ex-Fuel (¢/ask) 5.8 5.8 5.8 When service providers requested for higher rates due 5.8 to the impact of
Slide 30: Cost Inflation
Cost Inflation FSC Unit Cost ex-Fuel 6.2 Two waves of Transformation between FY2017/18 and FY2022/23 and our subsequent adoption of a 6.1 6.0 continuous transformation mindset 6.0 5.9 Unit Cost ex-Fuel (¢/ask) 5.8 -1.7% 5.8 5.8 When service providers requested for higher rates due 5.8 5.9 to the
Slide 31: Cost Inflation
Cost Inflation FSC Unit Cost ex-Fuel 6.2 Two waves of Transformation between FY2017/18 and FY2022/23 and our subsequent adoption of a 6.1 continuous transformation mindset 6.0 5.9 Unit Cost ex-Fuel (¢/ask) +5.4% When service providers requested for higher rates due 5.8 5.9 to the impact of infla
Slide 32: Supply Chain Disruption
Supply Chain Disruption Proactive steps to mitigate impact on capacity growth SIA Group Capacity Exercise flexibility to extend the use of existing aircraft (ASK) Active engagement with OEMs to mitigate shortage of aircraft spare parts Build up buffer stock of critical spares including 1H FY24
Slide 33: We are well positioned for the future
We are well positioned for the future Portfolio and Partnerships Multi-hub New Revenue Brand Promise Sustainability Digital Capabilities Financial Strength Talented People Slide 33 The copyright in this material (other than in respect of information from external sources) is owned by Singapore Airli
Slide 34: Well Positioned for the Future: Brand Promise
Well Positioned for the Future The three pillars of our Brand Promise Service Excellence Product Leadership Network Connectivity • 2024 Skytrax Awards for W orld’s Best Cabin Crew providing Strengthening connectivity with the addition of • First airline in Asia-Pacific to feature original Apple T
Slide 35: Well Positioned for the Future: Product Leadership
Well Positioned for the Future Product Leadership: Continued investment to deliver exceptional travel experience Investment of S$1.1B on cabin upgrades of 34 A350-900LHs and 7 A350-900ULRs, reaffirms commitment to innovation and excellence First Class cabin on 7 A350-900ULR aircraft, setting new
Slide 36: Creating opportunities to grow revenue beyond flying
Well Positioned for the Future Creating opportunities to grow our revenue beyond flying KrisFlyer Membership 10,000,000 9.44M 9,500,000 9,436,149 KrisFlyer members as of 30 Sep 2024 9,000,000 8,500,000 +21.5% +115.1% Top Growth 8,000,000 Countries Australia 7,500,000 China India USA 7,000,00
Slide 37: Group portfolio strategy
Well Positioned for the Future Group portfolio strategy Render of Scoot’s Embraer E190-E2 aircraft Today 52 aircraft* Leading 71 destinations* LCC in 12.7M passengers Asia 25 July 2017 carried in FY2023/24 Merger of Tiger Airways and Scoot First airline in the ASEAN region to 5 June 2012 operate t
Slide 38: Partnerships strategy
Well Positioned for the Future Partnerships strategy Enhancing connectivity to bring our customers anywhere in the world 35 codeshare partners 259 additional destinations *As of 30Sep24 Slide 38 The copyright in this material (other than in respect of information from external sources) is owned by S
Slide 39: Partnerships strategy
Well Positioned for the Future Partnerships strategy AI/SQ bilateral codeshare Deepening Cooperation with GA • AI will codeshare on SQ flights to 29 cities in APAC • CCCS’ ATI approval on 5 July 2024, GA and SQ are now working towards the implementation of the JV • SQ will codeshare on AI flights to
Slide 40: Multi-hub Strategy
Multi-hub Strategy Investment in the Air India Group Our direct participation in India’s growth was announced in 2013 Air India and Vistara merger 2024 onwards First Vistara International Flight 6 August 2019 Launch of Vistara Incorporation of TATA Airlines SIA Airlines Limited 9 January 2015 Inau
Slide 41: GenAI Impact
GenAI Impact The development of AI is as fundamental as the creation of the AI is one of the most profound microprocessor, the personal things we’re working on as humanity. computer, the internet, and the AI will continue mobile phone. It will change the It’s more profound than to get way more way p
Slide 42: Fast Adopter of GenAI Capabilities
Fast Adopter of GenAI Capabilities SIA GenAI Journey – Early Start Aug 2022 Feb 2023 Jul 2023 Dec 2023 Feb 2024 Apr 2024 Oct 2024 • GenAI identified as a • Business centric use • SIA GenAI Blueprint • SAA Smart • JARVIS launch with • Flight • JARVIS now has potential game- cases • Company-wide Searc
Slide 43: Fast Adopter of GenAI Capabilities
Fast Adopter of GenAI Capabilities Expanding Horizons and Accelerating Innovation. Total use cases: 242 Completed: 28 Customer and Revenue Generation Total Use Cases: 82 Completed (LIVE): 8 • Customer Insights Time savings • Brand Marketing Production time Portal: Summarise insights • M.A.R.V.I.E. :
Slide 44: Asia-Pacific is the fastest growing market
Well positioned for High Growth Markets Regions / IMF GDP Forecast* Countries (2025) Europe Global 3.2% 1.3% Europe 1.3% USA USA 2.2% 2.2% Latin America Middle 2.5% East 3.9% and Caribbean Latin America & Asia Pacific 4.4% Caribbean Middle East 3.9% ASEAN 4.5% 2.5% Asia-Pacific 4.4% China 4.5% India
Slide 45: Well positioned to tap High Growth Markets
Well positioned to tap High Growth Markets ASEAN GDP Growth +4.5% SQTR – 39 Points, 719 Flights Weekly India GDP Growth +6.5% SQTR – 13 Points, 133 Flights Weekly *As of 1Oct24 Slide 45 The copyright in this material (other than in respect of information from external sources) is owned by Singapore
Slide 46: Well positioned to tap High Growth Markets
Well positioned to tap High Growth Markets ASEAN GDP Growth +4.5% SQTR – 39 Points, 719 Flights Weekly India GDP Growth +6.5% SQTR – 13 Points, Partnerships reinforce our 133 Flights Weekly position in SE Asia, strengthening our connectivity and collaboration *As of 1Oct24 Slide 46 The copyright in
Slide 47: Well positioned to tap High Growth Markets
Well positioned to tap High Growth Markets ASEAN GDP Growth +4.5% SQTR – 39 Points, 719 Flights Weekly India GDP Growth +6.5% SQTR – 13 Points, Partnerships reinforce our 133 Flights Weekly position in SE Asia, strengthening our connectivity Investment into Air India for and collaboration 25.1% equi
Slide 48: We are well positioned to take on the challenges
We are well positioned to take on the challenges Portfolio and Partnerships Multi-hub New Revenue Brand Promise Sustainability Digital Capabilities Financial Strength Talented People Slide 48 The copyright in this material (other than in respect of information from external sources) is owned by Sing
Slide 49: Thank You
Thank You The copyright in this material (other than in respect of information from external sources) is owned by Singapore Airlines Ltd. Singapore Airlines Ltd has not independently verified the information from external sources. This material may not be modified, reproduced, distributed, republish
Singapore Airlines — H1 FY2024/25 Earnings Presentation on 6ix